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Fortescue Ltd (ASX:FMG) is trading down more than 2.6%, despite it delivering record iron ore shipments – up 10% to 53.7 million tonnes compared to the prior corresponding period.
In its June quarterly report, Fortescue told the market its iron ore production was expected to be between 190 million and 200 million tonnes during the 2025 Financial Year, with this including between 5 and 9 million tonnes from Iron Bridge, with the direction production (C1) cost for Pilbara Hematite being set between US$18.50 and US$19.75/wmt (wet metric tonne).
During the fourth quarter of the 2024 Financial Year, the direct production cost of Pilbara Hematite was US$18.53/wmt – two percent lower compared to the previous quarter.
The company also said it had $US4.9 billion cash on hand at the end of June, plus a net debt of $US500 million.
The iron ore price forecast is significantly down on the US$108 it is trading at today.
Fortescue has been trading at $20.76 (11.30am AEST).
Second quarter results have also been well received for Newmont Corporation (ASX:NEM), which reported its attributable gold production had fallen 4% to 1,607 thousand oz during the period – compared to 1,6800 in the prior quarter – mainly due to lower production from Cerro Negro in Argentina, following the death of two workers which suspended operations on April 9.
These were resumed the following month, but Newmont also reported a suspension at Telfer in the Pilbara region of Australia mid April, due to further work needing to be completed to remediate the safe operation of the tailing’s facility there.
Newmont’s gold all in sustaining costs (AISC) for the second quarter of 2024 was set at $1,562 compared to $1,439 in the previous period, while the adjusted EBITDA for the quarter was sitting at $1,966, up from $1694 the previous period.
Newmont has been trading up 2.38% today at $73.10.
And petrol retailing giant Ampol Ltd (ASX:ALD) has been trading flat at $33.12 after revealing total fuel sales for the first half of the 2024 Financial Year were expected to fall nearly 6% (5.9%) to 13,252 ML: from 14,081 ML in the prior corresponding period.
Within this, the company reported a drop of 4.8% in convenient retail fuel sales, which were 1,819 ML in the first half of FY 2024, compared to 1,911 ML for the prior corresponding period.
Meanwhile, Australian wholesale sales volumes rose 1% to 5,677 ML in the first half of FY 2024, from 5,620 ML in the prior corresponding period; international sales volumes were down 16% to 3,927 ML in the first half of 2024 from 4,649 ML for the same period last year.
Z Energy sales volumes were also lower: at 1,829 ML in the second half of 2024 compared to 1,901 ML- a drop of 3.8%.
Ampol also said it was in a strong position in terms of earnings, with adjusted EBIT expected to finish between $500 million and $510 million for the six months to June 30, together with an operating cost profit (RCOP EBITDA) of around $735-745 million for the same period.
The company cited citing earnings growth in convenience retail and New Zealand sales – as well as solid profits from the Australian market – as being the underlying factors.
